Comparative Advantage/ Consumption Quiz

A comparative advantage is the ability of one country to?

• use techology to move, recore, and process information.  
• hire people outside the country to do work once done inside
• produce a good or provide a service more cheaply than another
• outsource jobs to businesses in other countries

When a company outsources a particular job? 

• it increases the size of its staff
• it eliminates that job in order to save money during difficult economic times.
• it hires someone outside the company to do work that was once done inside the company
• it requires staff to do twice the work that they had once done

Which of the following statements about India is true?

• India is twice the size of the United States.
• India is the second most populous country in the world.
• India's population is only half that of the United States.
• India is a rural country with no major cities at all.  

How is India's location an advantage for American companies? 

• Shipping costs are minimized because of India's close proximity to the US. 
• Meetings are easy to schedule because of India and the US are in the same time zone
• with workers in India and the United States, companies can have employees working around the clock
• Workers can move easily between India and the United States becasue they are on the same continent

Why do many American companies outsource IT jobs to India?

• Indians are better qualified for those jobs than Americans are
• Labor costs are lower in India
• Few Americans want to do those kinds of jobs
• Americans do not have the expertise for those jobs

How does fierce competition for jobs affect how much workers in India can earn?

• Job candidates often accept lower pay in order to get a job.
• Employers often have to pay more when there are so many job candidates
• Strict labor laws regulate wages, so competition has little effect on earnings.
• Successful job candidates receive high pay because of the competitive nature of the job search

What is a consequence of the low cost of living in India?

• Most Indians only have to work part time in order to make a living.
• The Average Indian lives at a higher standard of living than the average American
• Many employers use the low cost of living as an execuse to pay workers too little to live on
• Many Indians enjoy a high standard of living despite that seems low to Americans

What attracts many Indian workers to jobs in call centers?

• Opportunities to transfer to call centers in the United States
• good pay and pleasant working conditions
• lifetime job guarantees.
• all of the above

What is India's official language?

• Urdu
• English
• Hindi
• they do not have an official language

Which nation was responsible for making English the dominant second language for educated Indians? 

• Great Britain
• the United States
• Canada
• Australia